System and method for remote deposit system

ABSTRACT

Described is a method and system for a remote deposit system. The method comprises receiving facsimile data corresponding to facsimile of a plurality of checks, constructing digitized images of the checks as a function of the facsimile data, gathering check data from each of the digitized images, and processing the check data according to a check processing procedure to settle transactions referenced by each of the checks.

BACKGROUND

Remote check deposit systems generally require a depositor (e.g.,person/entity wishing to deposit a check) to own a check scanner and acomputer with access to a computer network (e.g., the Internet). A checkscanned by the check scanner is transmitted to a financial institutionover the computer network so that the check may be cleared against anaccount of the check writer as a check or substitute check (e.g., inaccordance with the Check 21 Act) or converted to an electronic debitfor processing through an Automated Clearing House or direct clearingrelationship. The funds may be credited to the depositor's account anddebited from the check writer's account. When the depositor receives alarge number of checks each day, it is economical to own and maintainthe scanner, the computer and the network access. However, for smallerdepositors which only receive a few checks per day/week, expenses fromthe scanner, the computer and network access unnecessarily increaseoverhead. There is a need for a remote transaction interface whicheliminates the cost to the depositor of the scanner, the computer andthe network access.

SUMMARY OF THE INVENTION

The present invention relates to a system and method for a remotedeposit system. The method comprises receiving facsimile datacorresponding to facsimile of a plurality of checks, constructingdigitized images of the checks as a function of the facsimile data,gathering check data from each of the digitized images, and processingthe check data according to a check processing procedure to settletransactions referenced by each of the checks.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows an exemplary system according to the present invention fora remote deposit system;

FIG. 2 shows an exemplary front-end for a remote deposit systemaccording to the present invention;

FIG. 3 shows an exemplary check carrier for a remote deposit systemaccording to the present invention;

FIG. 4 shows an exemplary method according to the present invention fora remote deposit system;

FIG. 5 shows a method for digitizing checks according to the presentinvention;

FIG. 6 shows a method according to the present invention for sortingchecks into a first subfile and a second subfile based on the check'scategories;

FIG. 7 shows a screenshot of an exemplary embodiment of a softwareapplication according to the present invention;

FIG. 8 shows a method for depositing non-consumer check records storedin the first subfile according to the present invention;

FIG. 9 shows a method for depositing consumer check records stored inthe second subfile according to the present invention;

FIG. 10 shows an exemplary embodiment of a digital check record; and

FIG. 11 shows a flow chart diagram of processing checks according to thepresent invention.

DETAILED DESCRIPTION

The present invention may be further understood with reference to thefollowing description and the appended drawings, wherein like elementsare referred to with the same reference numerals. The exemplaryembodiment of the present invention describes a system and method for aremote deposit system. Those of ordinary skill in the art willunderstand that the present invention complies with all rules andregulations governing EFT and check processing including, but notlimited to the Check 21 law allowing for the use of substitute checks.

FIG. 1 shows an exemplary embodiment according to the present inventionof a system 100 for a remote deposit system for financial instruments(e.g., personal checks, corporate checks, business checks, traveler'schecks, money orders, Federal Reserve checks, government checks, thirdparty checks, convenience checks, cashier checks, official checks,non-U.S. checks, gift checks, etc.). The system 100 may also identifyand process payment coupons submitted with the financial instruments.For example, the payment coupons may correspond to goods/servicesprovided or an order for goods/services. The payment coupons may beprocessed in a substantially similar manner as the financialinstruments, as described herein.

The system 100 includes a depositor 104 (e.g., an individual, anorganization, a corporation, a government/municipality, etc.) which isconnected to a host system 102 over a telephone network 106 (e.g., PSTN,ISDN, FDDI). The system 100 generally comprises a front-end implementedat the depositor 104 and a back-end implemented at the host system 102.

FIG. 2 shows the front-end of the system 100 implemented at thedepositor 104 which includes an electronic device capable ofcommunicating with the host system 102 over the telephone network 106.In the exemplary embodiment, the electronic device is a fax machine 108which may be any conventional facsimile machine or other type ofnon-check scanner. When the depositor 104 intends to deposit a check110, the check 110 may be endorsed and placed into a carrier 112. Thecarrier 112 is then fed into the fax machine 108 and faxed to the hostsystem 102 via the telephone network 106. A recipient electronic device(e.g., fax machine, PC, laptop, etc.) connected to the telephone network106 at the host system 102 receives data, generates an image of thecheck 110 based on the data and processes the image to deposit funds inan account of the depositor 104. The processing of the image crops eachcheck image from the transmitted image, marries the front and back ofeach check image and performs optical character recognition (OCR) on aMagnetic Ink Character Recognition (MICR) line, in E13B or CMC-7 font,on the bottom of the front of each check image.

FIG. 3 shows an exemplary embodiment of the carrier 112 according to thepresent invention. The carrier 112 may be issued to the depositor 104 byan entity operating the host system 102, or, in the alternative, thedepositor 104 may construct the carrier 112 according to instructionsprovided by the entity operating the host system 102. In this manner,the carrier 112 may uniquely identify the depositor 104. For example,the carrier 112 may have a depositor identifier (e.g., individual name,company name, business identifier, bank account number, etc.) printedthereon, so that when the image of the carrier 112 is received by thehost system 102, the depositor 104 is easily identified, either manuallyor automatically (e.g., optical character recognition (OCR)), as will beexplained further below.

The carrier 112 may be formed as two sheets of transparent materialadhered to each other in selected locations to form any number ofpockets for receiving a corresponding number of checks (or otherfinancial instruments) therein. For example, in the exemplary embodimentshown in FIG. 3, the carrier 112 includes three pockets 115, each havingan opening for receiving the check 110 therein. When the check 110 isinserted into the pocket 115, both faces of the check 110 are visiblethrough the transparent material comprising the carrier 112. Those ofordinary skill in the art will understand that the carrier 112 mayinclude one transparent sheet if used with a single-side fax machine,because the depositor 104 may fax an image of the front face of thecheck 110 and reorient it to fax an image of the back face. However, thepreferred embodiment utilizes the two sheets of transparent material,and may also use a dual-sided fax machine which simultaneously generatesdata for both sides of the carrier 112.

Along with the depositor identifier, the carrier 112 may include otherindicia which may be manually and/or automatically (e.g., OCR)identified at the host system 102. For example, the carrier 112 mayinclude “FRONT” and “BACK” markers indicating front and back sides ofthe carrier 112 and, similarly, front and back faces of the checkstherein. Numerical markers may be used to indicate a position of eachpocket (e.g., “1” for first pocket, and so on). The carrier 112 mayfurther include one or more general pocket receiving, for example, atotals slip indicating a total number of checks and a total amount ofthe checks included in the carrier 112 in a predefined time period(e.g., a day, since a previous total amount was indicated), a note tothe host system 102, etc. The one or more general pocket (not shown) maybe any size and shape while the pockets 115 are sized and shaped toreceive the check 115. Those of ordinary skill in the art willunderstand that two different carriers may be used: one with pocketssized and shaped for personal checks and another for business checks. Inthe exemplary embodiment, the pockets 115 are large enough to receiveeither a personal check or a business check.

When the depositor 104 intends to deposit the check 110 (and,optionally, other checks), the check 110 is inserted into the carrier112, and the carrier 112 is faxed to the host system 102 over thetelephone network 106 using the fax machine 108. A recipient electronicdevice (e.g., a computer 118 shown in FIG. 1) receives the fax andconstructs images of the front and back faces of the carrier 112. Theimages are then processed by a computer 118. The computer 118 identifiesthe depositor 104, counts a number of checks and computes a total checkamount which may be compared to the value provided on the totals slip.The computer 118 crops, if necessary, and combines the front- andback-face images of each check using pocket markers and/or pageidentifiers imprinted on the carrier 112. The images may beautomatically reoriented so as to have the checks in the sameorientation. The host system 102 then performs OCR on a magnetic inkcharacter recognition (MICR) line of the check. The computer 118 may usecourtesy amount recognition (CAR) and legal amount recognition (LAR) andthe value on the totals slip to confirm a total amount of the checks. Ifthe total amount is not confirmed, the computer 118 may provide an alertso that an operator may visually confirm the totals. Also, if any of thechecks do not meet standard or federal image quality assuranceregulations, the depositor 104 may be asked either by the host system102 via response facsimile or by an operator via telephone or email tore-fax the carrier 112 or the selected check(s) contained in the carrier112.

When the checks have been confirmed and processed, a response message(e.g., fax, email, letter) may be sent to the depositor 104 confirmingthe deposit. The images may be stored in the database 114 which isaccessible via a network 116 (e.g., the Internet) for the depositor 104to review its file(s) which are maintained by the host system 102.

The database 114 may further include information, such as contact datafor the depositor 104 and/or its customers (e.g., names, addresses,phone numbers, etc.), goods and/or services provided, amounts deposited,financial institution information, or any other data that the hostsystem 102 may require to deposit the check 110. In the alternativeexemplary embodiment, the database 114 may include a plurality ofdatabases situated in one or more locations with each database storing aparticular type of data. The database 114 is accessible by the computer118 (e.g., a computing arrangement that has basic input and outputdevices as well as memory and storage devices) and may be accessible bya further computer (not shown) at the depositor 104 via the telephonenetwork 106 and/or the network 116.

The system 100 is also described in conjunction with FIG. 4 which showsan exemplary embodiment of a method according to the present invention.In step 200, the depositor 104 may receive the check as part of normalretail business or generate and send an invoice to a customer notifyingthe customer that a payment is due for particular goods and/or servicesprovided by the depositor 104 and/or a third party provider.

The invoice is only one of a plurality of means of apprising thecustomer of the outstanding debt. For instance, the customer may have aregular business relationship with the depositor 104 in which thedepositor 104 supplies the customer with goods and/or services on aregular basis pursuant to a contract (e.g., monthly, weekly, etc.). Inanother instance, the customer has a contractual obligation to pay thedepositor 104 on a periodic basis (e.g., monthly) and does not require aseparate monthly notice in form of the invoice. In an alternativeexemplary embodiment of the present invention, the customer may be adonor which has chosen to send an unsolicited donation to a charity ornot-for-profit organization; the unsolicited donation would need to beaccompanied by a notification of truncation/conversion of the check 110.Thus, the step 200 of generating the invoice may be optional.

In step 202, the depositor 104 receives the check 110 from the customereither in response to the invoice or for other purposes some of whichwere described above. The check 110 may be one of two categories/types:a first type of check drawn on a consumer account (e.g., a personalchecking account); or a second type of check drawn on a non-consumeraccount (e.g., a business checking account, a third-party businessaccount). It should be noted that the accounts of both the customer anddepositor 104 may be at the same or different financial institutions.The process of depositing the check 110 may depend on the type of check.However, the exemplary embodiment of the present invention allows thedepositor 104 to electronically deposit the check 110, regardless of itstype (i.e., consumer or non-consumer checks).

In step 203, the depositor 104 inserts the check 110 (along with anyother checks) into the pocket(s) 115 in the carrier 112 and faxes thecarrier 112 to the host system 102.

In step 204, the computer 118 processes the fax of the carrier 112 inorder to generate a digital masterfile 128 as shown in FIG. 11. Themasterfile 128 contains a record 801 for each of the checks 110. Anexemplary record 801 is shown in FIG. 10. The exemplary record 801 isfor a non-consumer check. The record 801 may include a digitized imageof the check 110 (e.g., a front image 812 and a back image 814) as wellas other check data such as an amount 810, an ABA number 804, an accountnumber 806, a check number 802, and other information (i.e., the datewhen the check 106 was written or prepared for deposit; data obtainedfrom the MICR line 800). Some of the check data may be obtained from aMICR line 800 as discussed in greater detail below. Those of ordinaryskill in the art will understand that consumer checks may have the sameformat or a different format from the exemplary non-consumer checkillustrated in FIG. 10.

The record 801 may be obtained by generating the image of the check 110using the faxed copy of the carrier 112. Once the check 110 is received,the computer 118 captures the MICR line 800, the front image 812 and theback image 814. Then the computer 118 parses and analyzes the frontimage 812 and the back image 814 as well as the check data (e.g., 802,804, 806, 810, etc.) and stores it in the masterfile 128. Thoseordinarily skilled in the art would understand that the masterfile 128may include just a single check or a plurality of checks of either orboth types.

As shown in FIG. 11, the masterfile 128 may include check records 801for multiple checks 106 received by the depositor 104. The processing isaccomplished via specialized software which may be installed on thecomputer 118. The process of capturing the check data for the masterfile128 is described in greater detail below.

In step 206, the records 801 of the masterfile 128 are subjected toadditional processing to sort each record 801. In the exemplaryembodiment of FIG. 1, the processing of the masterfile 128 isaccomplished by the computer 118 which has access to the database 114.

In step 206, the masterfile 128 is processed and sorted in order toseparate the non-consumer check records 801 a into a first subfile 130and consumer check records 801 b into a second subfile 132 as shown inFIG. 11. According to the present invention, the sorting is done oncethe records 801 have been created and stored in the masterfile 128. Thecomputer 118 processes the masterfile 128 to generate the first andsecond subfiles 130 and 132. The sorting process is described in greaterdetail below.

After the sorting of the masterfile 128 into the first subfile 130containing the non-consumer check records 801 a and the second subfile132 containing the consumer check records 801 b, the first subfile 130may be processed pursuant to non-consumer check procedures (e.g., asdefined by the U.S. Banking or other applicable rules and regulations)as discussed in step 208 and the second subfile 132 may be submitted forprocessing pursuant to consumer check procedures as discussed in step210. The first and second subfile 130, 132 are submitted to an OriginalDeposit Financial Institution (“ODFI”) 120 or financial institution bythe computer 118. It should be noted that the computer 118 and the ODFImay be owned by the same or separate entities. For example, the ODFI 120may be a financial institution that is providing the deposit services tothe depositor 104. The ODFI 120 may follow specific procedures indepositing the consumer and non-consumer checks.

In step 208, the computer 118 may process the non-consumer checks bysending the first subfile 130 containing the non-consumer check records801 a directly to the depositor's receiving deposit financialinstitution (“RDFI”) 126 or financial institution, or a third party'sRDFI. Alternatively, the RDFI 126 may print the non-consumer checkrecords 801 a stored in the first subfile 130 (e.g., create a substitutecheck) and manually deposit the substitute check. This process isdescribed in more detail below.

In step 210, the ODFI 120 deposits the consumer checks by transmittingthe second subfile 132 to a Clearing Network 122 (e.g., the ACH Network,Federal Reserve Bank, a private clearing house). The Clearing Network122 settles each transaction by debiting a customer's RDFI 124 for theamount 810 of the check 110 from the customer's checking account and bycrediting the depositor's RDFI 126 by the amount 810 to the customer's104 account. Those ordinarily skilled in the art would understand thatthe second subfile 132 may be processed in accordance with proceduresfor non-consumer checks as described in the step 208.

FIG. 5 shows a method for processing the check 110 to obtain the record801 and create the masterfile 128 as discussed with reference to step204 of FIG. 2. As stated above the record 801 may include the frontimage 812, the back image 814, the MICR line 800, as well as the dataextracted from the MICR line 800 (e.g., routing number 804, accountnumber 806, check number 802), the amount 810, and other miscellaneousdata (e.g., the date the check was issued). The record 801 may alsoinclude data about the customer (i.e., remaining balance, overduepayment, etc.) extracted from the database 114 if there was a priordealing between the parties.

In step 302, the computer 118 generates a digitized image of each sideof the check 110 to produce the front image 812 and the back image 814.The front image 812 may contain the date the check 110 was written, theaddresses of the customer 102 and customer's RDFI 124, and thecustomer's signature. The front image 812 also contains the amount 810and the information concerning the customer's 102 account encoded in theMICR line 800.

In step 304, the MICR line 800 of the check 106 is processed andanalyzed. The MICR line 800 is located at the bottom of the front image812 and is typed in MICR font (e.g., E13B, CMC-7). The MICR line 800 mayconsist of the routing number 804, the account number 806, the checknumber 802, and other symbols and/or fields. The standardized printingof the MICR line 800 allows the first computer 112 to recognize thenumbers and characters contained therein, using a conventional characterrecognition software along with MICR formats as commonly used by certainbanks and/or companies in the host system 102 resulting in easydigitization of the data 816. After the MICR line 800 is parsed the datais stored in the record 801 along with the front image 812 and the backimage 814.

The information contained in the MICR line 800 is essential forprocessing of the check. Every financial institution in the UnitedStates may have one or more unique routing numbers issued in conjunctionwith the Federal Reserve and/or Acuity, the registrar of routing numbersof the American Bankers Association. While a financial institution mayhave a multitude of routing numbers, those routing numbers are normallyassociated with that particular financial institution. The accountnumber is also a unique identification number issued by a financialinstitution to distinguish between a multitude of account-holders atthat financial institution. Furthermore, each check issued from aparticular financial institution account may have a check number. Acombination of the above-described numbers often makes a check unique,thus allowing the settlement transaction to be carried out in many caseselectronically (e.g., without presenting a physical proof of thefinancial instrument to a financial institution).

In addition to analyzing the MICR line 800, the computer 118 may alsoanalyze the amount 810 (“courtesy amount”) located at the right side ofthe front image 812. The computer 118 may use character recognitionsoftware to recognize the handwritten amount 810 (“legal amount”), or insome cases printed amount 810, and store it in a digital format in therecord 801. The character recognition analysis may encounterdifficulties in converting the handwritten amount 810, due to the uniquenature of each person's writing style. Thus, the character recognitionsoftware may have a certain accuracy in determining the amount 810 basedon the analysis of the handwriting. Therefore, there may also be amanual final verification of the amount 810. After verification, theamount 810 is also stored in the record 801. Furthermore, the softwaremay also capture other information to include in the record 801 such asthe date of the check and the name and address on the check 110.

After the record 801 is created, the computer 118 may update thedatabase 114 in step 306. The updating step may include reporting of adiscrepancy between the amount 810 in the record 801 and the amountexpected by the depositor 104, the correlation of the customer's checknumber 802 to a particular invoice, the verification of the customer'sname and address, etc. In addition, if this is the first check receivedfrom a particular customer, the information (e.g., routing number 804,account number 806, etc.) for the customer may be added to the database114.

In step 308, the masterfile 128 is generated. The masterfile 128includes records 801 of every check 110 processed by the computer 118.Thus, the masterfile 128 may include a plurality of data files and imagefiles corresponding to each check which are combined into a single fileas shown in FIG. 11.

As described with reference to FIG. 4, after the masterfile 128 iscreated, it is processed to generate the first and second subfiles 130and 132 (step 206 of FIG. 4). This step may be performed on a singlecomputer (e.g., the computer 118) or a plurality of computers. In thisexample, the analysis and the sorting process are performed using asorting software application running on the computer 118.

FIG. 6 shows an exemplary method for sorting checks 110 as describedwith reference to step 206 of FIG. 4. In step 400, the sorting softwareanalyzes each record 801 contained in the masterfile 128 to determineits category (i.e., a non-consumer check or a consumer check). Thisanalysis may be accomplished in a number of different manners.

In one example, the sorting software may analyze a format of the MICRline 800. Since each category of check generally uses a different formatfor the MICR line 800 (i.e., positioning and spacing of the routingnumber, the account number, and the check number). As described above,the exemplary check shown in FIG. 10 is the general format of anon-consumer check, i.e., MICR line 800 is formatted having the checknumber 802 at the far left, followed by the routing number 804 and theaccount number 806. For consumer checks (not shown), the format isgenerally the routing number located at the far left followed by theaccount number and the check number. Thus, by reading the format of theMICR line 800, the sorting software may determine whether the check is aconsumer check or a non-consumer check.

In another exemplary embodiment of the present invention, thenon-consumer check shown in FIG. 10 illustrates the use of specialcharacters surrounding the routing number 804 and the check number 802.Conversely, for consumer checks, the special characters generallysurround the routing number and the account number. Thus, by reading thespecial characters or other proprietary software, the sorting softwaremay be able to determine whether the check is a consumer check or anon-consumer check. Those of ordinary skill in the art will understandthat there may be other unique features of consumer checks and/ornon-consumer checks that may be used to sort between the two types ofchecks.

Occasionally, a check may have a differently formatted MICR line thatdeviates from the accepted norms. As a result, the above-describedanalyses based on the format of the MICR line 800 may be inconclusiveand further analysis may be required. However, even if the sortingsoftware concludes that the check 106 is of a particular type, thesorting software may proceed with the further analysis to verify its ownconclusion, which may be based on historical information from previouschecks processed and retained by the host system 102.

After completing the analysis of the MICR line 800, the sorting softwaremay compare the routing number 804 and the account number 806 with theinformation stored in the database 114. If the customer has previouslysent a check to the depositor 104 from the same checking account, then arecord of that transaction may be stored in the database 114. Thus, ifthere is data of the previous transaction in the database 114, the datawill include information as to whether the account was a consumeraccount or a non-consumer account. The sorting software may search thedatabase 114 for the routing number 804 and the account number 806 tofind a match in the old payment records. If the routing number 804, theaccount number 806 of the check 110 match the routing number and theaccount number of the previous check, then the check 110 originated fromthe same account, hence its category is the same. Thus, the sortingsoftware may verify its previous conclusion or come to an initialconclusion based on this checking.

Another example of a sorting method may use the amount of the check. Forinstance, the sorting software may utilize the amount 810 to find amatching amount in one of the unpaid invoices. If such an invoice isfound, the information about the customer is obtained from the database114 and the check 110 is categorized accordingly. For example, if theamount 810 is for $701.32 and in the database 114 the invoice for$701.32, then there is a match. After the match is found and theinformation about the customer is extracted, the sorting softwarecategorizes the check 106 according to the category of the customer.Thus, if the customer is a non-consumer then check 110 is categorized asa non-consumer check. This categorization method only works in certainsituations. For example, there is a possibility that the category of thecheck may not match the category of the customer (e.g., a business ownerpaying with a consumer check). Furthermore, this sorting algorithm mayonly work when there is a single invoice that matches the amount 810.Thus, if there are multiple invoices with that match the amount 810 ornone of the invoices match the amount 810, this analysis isinconclusive.

Regardless of whether or not the sorting software provides a definiteresult, the sorting software may run more sorting algorithms or move tothe next step. However, if the sorting software is unable to determinewhether the check 110 is consumer or non-consumer, it will conclude itsanalysis and categorize the check 110 using a default category. Thedefault category may be consumer, non-consumer, or undefined and it mayrequire manual categorization by the user.

In step 402, the sorting software used in the host system 102 determinesif the check 110 is consumer or non-consumer based on the analysisdescribed above. If the analysis is inconclusive, the categorization hasfailed, and in step 406, the sorting software does not categorize thecheck 110.

The sorting software may provide information about the check 110 to thedepositor 104 and request or require manual adjustment of the checkcategorization as discussed below in step 408. If the sorting softwarewas successful in categorizing the check 110, then, in step 404, itstores in the record 801 the corresponding category. Regardless of thecategorization, in step 408, the computer 118 may display the results ofits analysis on a monitor 500 (e.g., as shown in FIG. 7), other displayarrangements or output devices.

The monitor 500 may show the categorization of the check 110 if thesorting software was able to determine it in steps 400-402. If it ispossible to determine the categorization of the check 110, then in step404 the sorting software selects either a “Consumer” field 508 or a“Non-consumer” field 510. For instance, if the check 110 is anon-consumer check, then the “Non-consumer” field 510 is highlighted.However, if the computer 118 is unable to categorize the check 110 thenit will set the categorization to default (e.g., a non-consumer),allowing an operator to select the proper field as explained below inregard to another check record.

In the example of FIG. 7, the monitor 500 includes a digital checkrecord of a second check which includes an account number 528, anrouting number 526, a check number 512, a snippet 514, and a digitalamount 516. In this case, the digital amount 516 is different from anamount 530 being displayed in the snippet 514. In addition, the“Consumer” field 518 is highlighted, since the computer 118 failed tocategorize the check in step 406 and provided that the “Consumer” field518 is the default category. The user may correct the digital amount 516by changing it from $707.01 to reflect the sum of $101.01 shown in theamount 530 (step 410). As discussed above, the operator may alsomanually categorize the check by choosing the check's categorizationbased on the information supplied by the snippet 514.

After the check 110 is categorized, either by the user or the sortingsoftware, the record 801 is stored in a corresponding subfile, eitherthe first or second subfile 130 or 132 (step 412). The first and secondsubfiles 130 and 132 are similar to the masterfile 128 since they alsocontain a collection of records 801. However, the records 801 withineither subfile 130 or 132 are of the same category, either non-consumeror consumer. If the check 110 is a non-consumer check, then it is storedin the first subfile 130. However, if the check 110 is issued from aconsumer bank account, then it is stored in the second subfile 132.After the first subfile 130 and the second subfile 132 are generated,they are uploaded to the ODFI 120 for further processing.

In step 414, the database 114 is updated with transactional data (e.g.,routing numbers, account numbers, contact information, etc.). Regularupdates maintain the database 114 so that it may be used duringcategorization of checks in the future as discussed above. For instance,during the amount-matching sorting algorithm, when the sorting softwaresearches the database 114 for invoices 108.

FIG. 8 shows an exemplary method according to the present invention fordepositing non-consumer check records 801 a stored in the first subfile130. In step 600, the first subfile 130 is sent to the ODFI 120 orfinancial institution for processing. As previously described,non-consumer checks may not be entered into the Clearing Network 122.Therefore, in step 602, the ODFI 120 utilizes different depositingprocedures which may require a substitute check for each check from itscorresponding check record. A substitute check is created based on acheck record, as shown in FIG. 10. It displays the front side 812 andthe back side 814 and in effect replaces the check 110 (e.g., if thecheck 110 was issued from a non-consumer account). The substitute checkalso acts as a legal substitute for the original check. In step 604, theODFI 120 sends the substitute check of the check 110 to the depositor'sRDFI 126 or financial institution in order to settle the transactionreferenced by the check 110. Thus, the non-consumer checks are depositedin the same manner as if they were brought physically to the financialinstitution (e.g., depositor's RDFI 126).

FIG. 9 shows a method for depositing consumer check records stored inthe second subfile 132 according to the present invention. In step 700,the ODFI 120 receives the second subfile 132 containing the checkrecords of consumer checks. In step 702, the ODFI 120 forwards the checkrecords from the second subfile 132 to the Clearing Network 122 in orderto settle transactions referenced by the checks whose data is stored inthe second subfile 132.

The Clearing Network 122 receives the records stored in the secondsubfile 132. The Clearing Network 122 may verify if the transactions inthe second subfile 132 complies with various procedures. For instance,the Clearing Network 122 may check for duplicate entries, amount of acheck, the number of times a particular check has been presented, etc.Subsequently, the Clearing Network 122 debits the customer's RDFI 124 todeduct the amount 810 from the account of the customer and that amountis credited to the account of the depositor 104 by the depositor's RDFI126. As stated above, the second subfile 132 may be processed utilizingprocedures for the first subfile 130.

It will be apparent to those ordinarily skilled in the art that variousmodifications and variations can be made in the structure and themethodology of the present invention, without departing from the spiritor scope of the invention. Thus, it is intended that the presentinvention cover the modifications and variations of this inventionprovided they come within the scope of the appended claims and theirequivalents.

What is claimed is:
 1. A method for remote deposit into an entity by a depositor, without the depositor needing a check scanner, comprising: operating a host system, wherein the operating is performed by the entity, and wherein the depositor connects to the host system over a telephone network; at a depositor location remote from the host system, receiving at least one check into a carrier apparatus; after the check has been received into the carrier apparatus, receiving the check-containing carrier apparatus into a fax machine at the depositor location; at the host system, receiving facsimile data via the telephone network and constructing digitized images of the check as a function of the facsimile data, wherein the receiving and constructing are performed by a recipient electronic device.
 2. The method of claim 1 wherein the step of receiving the at least one check into the carrier apparatus comprises receiving the at least one check into a carrier apparatus that comprises a transparent film having plurality of non-overlapping pockets created therein, each of the pockets including at least one opening and being sized and shaped to receive a check therein; and front and back indicators disposed on front and back faces of the film, respectively; and unique pocket indicators disposed on the pockets.
 3. The method according to claim 2, wherein the step of receiving the at least one check into the carrier comprises receiving the at least one check into a carrier in which the film size selected from the group consisting of approximately 8½×11 and approximately 8½×14.
 4. The method according to claim 2, wherein the step of receiving the at least one check into the carrier apparatus comprises receiving the at least one check into a carrier apparatus that comprises a depositor indicator disposed on the film, wherein the depositor indicator is indicative of an identity of a depositor of the check.
 5. The method according to claim 2, wherein the step of receiving the at least one check into the carrier apparatus comprises receiving the at least one check into a carrier apparatus in which the pocket indicators are sequential numbers. 